Turbo Tax is not accounting for Mortgage interest and is only telling me I have 10.5K in itemized deductions. I paid 22K in mortgage interest. Is there something wrong?

[Mtharker]

Here are the allowed deductions I have:
Mortgage Interest and Refinancing $22,329.00
Property (Real Estate) Taxes $6,605.00
Child and Other Dependent Tax Credit $2,000.00
Donations to Charity in 2020 $929.00
Car Registration Fees $515.00
before the IRS added the new itemized deduction form it was allowing me to have 32k in itemized deductions.

[DanaB27]

If you refinanced your mortgage and used any amount for something else than your home than you won't be able to deduct the interest for that part.

Please go back to the mortgage entry and review the questions after the Form 1098 entry carefully:

1. Login to your TurboTax Account 
2. Click on the Search box on the top and type “1098”
3. Click on “Jump to 1098”
4. Click "Edit" to review your 1098 entry and questions.

Please pay special attention to the questions Is this loan secured by a property of yours? and Is this loan a home equity line of credit or a loan you've ever refinanced? since the answers to these question can disqualify you from the mortgage interest deduction.

Please be aware, these conditions must be met for mortgage interest to be deductible:

• The loan is secured, which means the lender has some kind of guarantee of payment, usually in the form of property. If a borrower defaults on payments, the lender can seize the property that’s securing the loan. If you’re buying or refinancing a home, especially if it’s your first home, the loan is usually secured by the home you’re buying or refinancing.

• For tax years 2018 through 2025, you can only deduct the interest from the amount of your loan that was used to buy, build, or improve the home that it’s secured by. If you’ve ever used part of this loan to pay for things other than this home, you cannot deduct the interest from that amount of the loan, even if the transaction didn’t take place this year.

• The home with the secured loan must have sleeping, cooking, and toilet facilities.
• The debt can’t exceed $750,000 (or $1,000,000 if the loan was taken before December 16, 2017) in order to get the full deduction.
• You or someone on your tax return must have signed or co-signed the loan.
• If you rented out the home, you must have used the home more than 14 days during the tax year or 10% of the number of days you rented it out, whichever is greater.

[DKB59]

I am having the same issue and answered all questions properly.  It appears TurboTax has a glitch.  I hope they fix it with a patch.

[DanaB27]

To verify you answered "Yes" to "Is this loan secured by a property of yours?" and  "No" to "Is this loan a home equity line of credit or a loan you've ever refinanced?" or if you did a have home equity line of credit did you use it for the home? 

If yes and you double checked everything and it still doesn't give you the deduction then try to delete the 1098 and reenter the form and answer the questions carefully again.

@DKB59

[sophiebarth]

I have the same glitch. Called in to support and verified that it is itemizable and I answered all the questions correctly. It seems to be a programming error.

[hjhfsadf]

I am having the same problem. I think it is an error in turbo tax.

I am entering a second 1098 and it seems to mess it up. 

[EnjoyABQ]

Look at Forms view, if you refinanced, then you should see two "Home Int Wkst" forms. Look at line F9 in the Limitation Smart Worksheet section. What is the sum of line F9 from both worksheets? 

[hjhfsadf]

unable to view forms since it is online TT and I haven't paid yet 

[DaveF1006]

it may be a mortgage limitation problem that is a known issue with Turbo Tax. Some TurboTax customers are experiencing an issue with their Home Mortgage Average Balance. This can cause in the the Home Mortgage Interest to be incorrectly limited.

If you're experiencing  the issue above,  please go here to receive email notifications when any updates related to this issue become available.

[pennylynntx]

I am having the same issue.  I sold a house in April 2020 and it is not calculating the average balance correctly.  We bought a new house and it is not allowing the correct deduction.  

[LinaJ2020]

Here is the workaround.  Please click on the attached link:

Home Mortgage interest being limited 

For tax years prior to 2018, your mortgage interest deduction is generally limited if all mortgages used to buy, construct, or improve your first home (and second home if applicable) total more than $1 million ($500,000 if you use married filing separately status). Beginning in 2018, this limit is lowered to $750,000.  For more information about the mortgage interest deductions, click here: Mortgage Interest deduction

[jlbrick]

This is a software bug that TurboTax has explicitly decided not to fix.  See discussion here: https://ttlc.intuit.com/community/tax-credits-deductions/discussion/bug-with-refinance-on-a-large-mo...

[rooney4108]

Turbotax cannot or will not fix this bug.  I went to TAXACT and they have figured it out.  I am just going to use TaxAct and scrap everything with Turbotax.

I recommend everyone else do the same even it means re-entering everything for 2020.

[hjhfsadf]

As of today, there is no real fix. They posted a sloppy work around. 

[BennyC1]

So, this has been ongoing---I've tweeted and DM'd a few times, and TT has yet to fix this glitch.   I'm seriously disappointed them this year, and I've been a faithful TT user since the 1990s.